- 31 Aug, 2018

First Home Owners Grant NSW

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Saving to buy your first home isn’t easy, which is why the Australian Government introduced the First Home Owners Grant (FHOG) in 2000. While nationally recognised, each territory and state fund their own FHOG, which means that the FHOG varies. As a result, the First Home Owners Grant NSW is different to other states and rule tweaking occurs yearly, depending on this state’s budget. So, what’s the current First Home Owners Grant NSW legislation and how does this apply to you?

FHOG NSW Rule Changes

Here’s the deal: since the introduction of the FHOG NSW, a national scheme that makes home ownership more affordable, the New South Wales government has altered the scheme significantly. Funded and legislated by the state government, the First Home Buyers Grant NSW is a one-off payment for first-time home buyers. The amount available to first home buyers, the property types eligible and the capped home value limit changes yearly depending on the rules established by the state government.

Now: when first introduced, the FHOG NSW was available for new and established homes. With a value of $7,000, the FHOG NSW was not income tested and no home purchase price limit applied to the grant.

After its introduction, the FHOG received a boost on two occasions – in 2008 and 2012. These boosts were in response to changing economic conditions and added thousands to the grant.

What’s the bottom line? Today, the NSW government also offer stamp duty exemptions to make home buying more affordable.

Use our stamp duty calculator to get an estimate on your stamp duty costs.

To find out more information regarding your eligibility for the First Home Buyers Grant NSW or any other exclusions, please refer to the links at the bottom of this article.

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The Current FHOG NSW Scheme

The value of the First Home Owners Grant NSW depends on the date of home purchase. Now only applicable to new home building, the FHOG NSW scheme contributes $10,000 to the purchasing or construction of a new property after January 1, 2016. New homes bought between October 1, 201 and December 31, 2015 are eligible for the $15,000 grant that applied at the time.

At present, the FHOG NSW value depends on the value of the property. Current value caps are as follows:

Transaction Date Cap Applicable
July 1, 2017 onwards $600,000 for purchase;

$750,000 for building

October 1, 2012 to June 30, 2017 $750,000
January 1, 2011 to September 30, 2012 $835,000
January 1, 2010 to December 31, 2010 $750,000
July 1, 2000 to December 31, 2009 No cap applies

Source: Revenue NSW


The current FHOG NSW applies to new homes, with payment of the grant variable depending on the building type. Imbursements are as follows:

  • Building contract – Funded at the time of the first progress payment.
  • Owner-builder – Disbursed on receipt of the Certificate of Occupancy.
  • New home – Remunerated at settlement.
  • Off-the-plan purchase – Paid at the time of settlement.

Some other important points to note about the First Home Buyers Grant NSW are:

  • The grant is tax-free.
  • The lender typically receives grant payments.
  • FHOG NSW applications typically process within 5-business days.

You might be wondering: how do you know if you’re eligible for the FHOG NSW? Let’s find out now.

FHOG NSW Eligibility

Depending on the territory or state of home purchase, the FHOG conditions for eligibility will differ. Generally, the following rulings apply:

  • You must be a first home buyer to be valid.
  • If you’re applying with a partner, then they must also be a first home buyer.
  • You must have resided in Australia for more than 6-months.
  • You cannot apply if you’ve previously owned property in Australia.
  • An eligible home must be in Australia.
  • Receiving the grant occurs only once.
  • Only Australia citizens or permanent residents can apply.
  • Natural people can apply, not a company or trust.
  • Grant applicants must live in the home for at least six months after completion.
  • Applicants must be 18-years-old and over.

Only one grant is payable per home regardless of the number of applicants.

If you find the grant confusing or need help to fill out an application, then contact your lender or mortgage broker. Often staff can help you understand the grant better and assist you in filling out the form, so it processes quickly.

This is crazy: according to the scheme, only 20% of applications lodged are correct the first time. So, to avoid issues make sure that you provide the appropriate supporting documents, sign the form, and send all information in as soon as possible.

Supporting application documents typically include:

  • Proof of identity – Australian birth certificate, foreign passport, and Australian Visa, if born overseas, citizenship or permanent residency certificate or Visa, Australian Driver’s License, firearms license, Medicare card, motor vehicle registration and debit/ credit financial institution card.
  • Marital status – Marriage certificate, decree nisi (if divorced), partner death certificate (if widowed), and statutory declaration if separated.
  • Proof of purchase – contract to buy property, certified copy of transfer, title search, a certified copy of property valuation, current rate notice.

It gets better: in addition to the FHOG NSW, the state government have also introduced stamp duty concessions. But, here’s the kicker: these concessions apply to a home purchased from July 1, 2017 and apply to homes valued between $650,000 and $799,000. The grants are as follows:

Purchase Price Stamp Duty Payable
$650,000 $0
$660,000 $2,090
$670,000 $4,190
$680,000 $6,290
$690,000 $8,390
$700,000 $10,490
$710,000 $12,590
$720,000 $14,690
$730,000 $16,790
$740,000 $18,890
$750,000 $20,990
$760,000 $23,090
$770,000 $25,190
$780,000 $27,290
$790,000 $29,390
$800,000 No discount
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Additionally, each territory and state government have a link to their FHOG, as listed below. However, you can also visit the Federal Government site to obtain more information.

State / Territory Website
Australian Capital Territory revenue.act.gov.au
New South Wales www.osr.nsw.gov.au
Northern Territory www.treasury.nt.gov.au
Queensland www.firsthomeowners.initiatives.qld.gov.au
South Australia www.revenuesa.sa.gov.au
Tasmania www.sro.tas.gov.au
Victoria www.sro.vic.gov.au
Western Australia www.finance.wa.gov.au

Are you seeking to buy your first home in New South Wales? Then contact eChoice, our brokers can help you understand the First Home Owners Grant NSW and assist with your application. Plus, they have access to 100’s of mortgage products. So, we’ll find you a competitive mortgage.

If you’re not buying a home in NSW, then you may be eligible for the First Home Buyer Grant in another state. Just remember that all states have different rulings, so you need to read the legislation before applying for the FHOG.

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